Btl Scum Regrouping And On The Offensive. -- Merged

[Si1]

Quite. If the choice is annoying a few overleveraged spivs, or otherwise inevitable future mass social unrest, i think george knows which side his bread is buttered.

He hopes to be Tory leader going into the 2020 and 2025 elections

So there you go

[“Nasty Piece of work”]

Squel Piggy, squel.

[Si1]

Well, perhaps they're not idiots and will just pass the burden on to the renters, who will be even less able to save for a deposit.

G.O. will not back down - so we end up with an indirect tax on renters.

The biggest burden will be the additional ambulance costs every time I get taken to hospital almost dying of laughter

Now, grow a brain

[spunko2010]

I completed the survey,hoping for a chance to enter my own comments. There wasn't one, sadly.

[thewig]

Might as well have done a survey with one question 'would you like to pay less tax than you have to now' and sent it to the government squealing LOOK THE PEOPLE HAVE SPOKEN!!

This is getting enjoyable to watch these braindead dullards slowly but surely begin to realise their entire world view has just had a red hot poker shoved up it.

[spunko2010]

The self-importance of asking to meet with him as well. W-T-F.

[SarahBell]

"Other legitimate expenses: £100,000 (e.g. insurance, letting, management, maintenance etc.)"

Nah I'd like to see their invoices..

[durhamborn]

Dear Mr Freeman,

thankyou for your letter.The Conservative party can only exist when people own their own homes.You have 50 buy to lets.Thats 50 renters instead of 50 Conservative voters.

We have decided their 50 votes (and their families) outweighs your 1 vote.

We enclose membership forms for the Labour party and have passed your details on to HMRC,

Osborne,

x

[Sandwiches33]

Zero sympathy, oh the humanity of paying tax on 200k, loads of other businesses who actually make stuff and contribute enormously to the economy pay full whack. The only people who will be affected by the fall out from this will be

tanning salons

teeth whitening

audi/mini salesmen

hair products

pointy shoe with clickity hell sellers.

[mattyboy1973]

General consensus is that highly geared landlords will be able to pay down their debt by selling some of their properties. However, the very nature of a highly geared property investment strategy means that in several cases the net sale proceeds would be insufficient to pay CGT due to outstanding mortgage liabilities having significantly exceeded the original purchase price of assets due to refinancing in line with property values during the property boom which has occurred since the early/mid 90’s.

Any "businessman" who has got himself into this situation deserves to be thrown under the bus - and they will be.

[Sandwiches33]

I'm sure such talented, intelligent, driven people can always rely on there degrees in computer science, engineering or medicine if BTL no longer proves profitable?

oh no wait.........

[TeutonicKnight]

"£300K in rent is only a 6% return"

No it is not. Be careful with your terminology. It is a 6% yield. Return is something else based on the initial investment capital.

BTW yields in the South are now 4.5 to 5%. There is no way most BTL in the South anyway quote yields above that.

[sPinwheel]

Good for them! Trying to do something about thier predicament rather that just whining on an internet forum.

Probably have the same effect.....naff all.

Edited July 17, 2015 by sPinwheel

[ElPapasito]

Dear Mr Freeman,

thankyou for your letter.The Conservative party can only exist when people own their own homes.You have 50 buy to lets.Thats 50 renters instead of 50 Conservative voters.

We have decided their 50 votes (and their families) outweighs your 1 vote.

We enclose membership forms for the Labour party and have passed your details on to HMRC,

Osborne,

x

ROFL

Survey filled in.

[Squeeky]

Can't they just put the rent up to cover the tax increases...

I'm surprised that the businesses operate of no profit, especially at the current interest rates.

[mfs1959]

"£300K in rent is only a 6% return"

No it is not. Be careful with your terminology. It is a 6% yield. Return is something else based on the initial investment capital.

BTW yields in the South are now 4.5 to 5%. There is no way most BTL in the South anyway quote yields above that.

You are, of course, right. I was being lazy.

It is, in fact, a 30% return based on the £1m investment assumed. Of course, if prices fall in the south then yields can rise.

Edited July 17, 2015 by mfs1959

[Assume The Opposite]

So if I sell my overseas shares why can't I be exempt from CGT? BTL really are scum of the earth. Second is estate agents.

[MrXxx]

Dear Sir,

I would like to suggest:-

Option 4 - If your margins are that small/tight get out of BTL and into a business venture that you understand a little bit better!

Option 5 - I have just given you an amnesty (until 2020)..an amnesty to get out quick, but you appear to want to tell all of your associates how bad things are rather than taking the 'side exit' quietly...what do you thing they are doing whilst you are in (long winded) correspondence with me?

Yours sympathetically (I hope I can rely on your vote?!),

Mr Foreman

[Bear Goggles]

I'd probably just reply with a cat meme:

[Venger]

I'm sure such talented, intelligent, driven people can always rely on there degrees in computer science, engineering or medicine if BTL no longer proves profitable?

oh no wait.........

They're really feeling sorry for themselves. Neverwhere has made the point that they only see larger companies buying their portfolio of BTL houses at lower prices, not OOs.

Official Tory Party Response To Whinging Buy-to-let Landlords...

{Obviously this is satire and should be read as such}

Dear Whinging Buy-to-let Landlord,

Firstly, thanks to the Landlord community for your votes in May. We know you feared the Left getting in with their rent caps, extra tenant rights and mansion tax. But you didn't know what we had up our sleave, did you?

We know that Landlords consider themselves as business people and therefore feel very much part of the 'Tory family'.

However, we have played you guys for fools. Yes we love business, but we love big business who donate to our party funds. Not little businesses like yours.

You Landlords have never really been part of the 'Tory family'. You are just peasants with ideas far above your station.

more http://www.propertytribes.com/official-tory-party-response-whinging-buy-let-landlords-t-127621271.html

[jammin35]

A little nugget from that Property Tribes thread. Looks like Tory MPs have been briefed with their response.

RE: Summer Emergency Budget 2015 - landlord and property perspective

I've just received the following reply to my letter which I posted on this thread a few days ago from my Tory MP which would appear to be a standard response with my name hand-written at the top and his signature at the bottom:

I agree that the private rental sector is very important, providing homes for nine million people and the Government wants to support the vast majority of landlords, who look after their properties and are fair to their tenants.

That said, buy-to-let landlords have a huge advantage in the market as they can
offset their mortgage interest payments against their income, whereas
homebuyers cannot. This has contributed to the rapid growth in buy-to-let
properties, which now account for over 15 per cent of new mortgages -
something the Bank of England warned could pose a risk to our financial
stability. For this reason, I think it is sensible that the Chancellor announced in
the Budget that mortgage interest relief will be limited to the basic rate of tax.

Prior to this change, for every pound of mortgage interest costs a top rate
taxpayer incurred they got up to 45p back from the taxpayer. Furthermore, the
better-off the landlord, the more tax relief they got, which I cannot support. As
you are aware, this will now be reduced to 20p, but only gradually, over four
years from April 2017.

I believe this strikes the right balance between tackling this unfair advantage for
the richest, while recognising that, at the other end of the spectrum, many hard-
working people who have saved and invested in property depend on the rental
income they get.

I am sorry that this may not be the response that you were hoping for but, I hope
it explains my own position on this.

I am now even more angry than I was before and will be writing back the following reply:

I absolutely, categorically disagree with your own position and the Government's stance on this. I always thought the Tory Government was pro-business? Letting properties IS a business (and a tough one at that if done properly) and once this hair-brained and ill-thought out scheme is implemented, effectively I and many other Landlords will be taxed on turnover rather than profit which means for many they may well be taxed even if they make a loss!

It might be a little fairer if the Chancellor had decided to implement this change from now onwards rather than retrospectively, so that at least folk would have the choice as to whether to invest in property or not. This would have the same desired effect in that it would greatly slow the rate of growth of buy-to-let mortgages without penalising those already encumbered. It would be even fairer still if he decided to do the same to all other business's in the Country and tax on turnover rather than profit after expenses, but then I'm guessing that might just affect your chances of getting in for a second term of office......

I predict turbulent times ahead for your Government over this game-changing insanity if you do push forward with it. Rents WILL rise, Landlords WILL attempt to increase profits by doing less and less maintenance. They WILL sell up highly leveraged and less profitable properties which are currently housing the more vulnerable tenants and I predict you will see a significant increase in demand for rental properties which will further put upward pressure on rents. Only the professional tenants will then be able to afford to rent which will leave a glut of lower paid/benefits tenants with nowhere to live.... This will be an absolute nightmare for local councils, already stretched to the limit to find accommodation for these soon to be homeless people. Perhaps rather than consider an increase in MP's salaries they should look to the rent a room scheme for spare rooms in their personal or constituency homes in order to supplement their incomes as I think there may well be quite a big demand for this kind of accommodation in the coming years.....

If this scheme does come into force, I want you to know that you and this Government have now categorically lost my vote (and I suspect that of many other Landlords) at all future elections. . If my predictions for chaos in the private rented sector come true I now very much doubt we will be seeing a Tory Government in power after the next election.

Please don’t concern your-self with writing a reply to me, but feel free to keep a copy of this letter in order that you may at some point in the future again heed its warnings when it’s probably all too late.

Come on everyone - get writing!

[SillyBilly]

My only disappointment was GO didn't go far enough. Its nice to see that these greedy people are squirming now that their free meal ticket is threatened.

And surely nobody other than landlords themselves seriously think that renting properties is some sort of noble business or hard work? What acumen, knowledge or graft does it take to own an house and get somebody else, with real market-valued skills and work ethic, to pay for it for you or provide you a month-to-month income? So, you might have to organise a new boiler every 10 years and fill out a tax return once a year...and what else?

And as for putting up rents, don't bite the hand that feeds you. Renters are keeping you, not the other way around.

[SillyBilly]

Should remove "own" an house, to "leverage" a house.

[bobbo]

This is gold ^^^

[Bear Goggles]

[Massive ranty whinge]

Brilliant. Immediate descent into an angry incoherent rant.

Guess what? When you take on debt, you take on risk. In this case it turned out to be political risk. What's that, you didn't work this into your business model? Thats a shame.